The U.S. Supreme Court, struck down Trump’s tarirr policies in a 6-3 vote under the International Emergency Economic Powers Act (IEPPA) after being deemed unconstitutional.
Chief Justice John Roberts wrote the 6-3 opinion for the court majority saying the president lacked the peacetime authority to use IEPPA to impose tariffs, “In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.'
During arguments before the court last year, Trump's lawyers said the president possessed the au-thority to issue tariffs. Roberts rejected that argument. 'When Congress grants the power to impose tariffs, it does so clearly and with careful constraints,' he wrote. 'It did neither here.'
Justice Brett Kavanaugh, wrote the principal dissent, noting that 'The United Sates may be required to refund billions of dollars to importers who paid the IEEPA tariffs, even though some importers may have already passed on costs to consumers or others. The Court says nothing today about whether, and if so how the government should go about returning the billions of dollars that it has collected from importers.'
As of last December, the government collected more than $130 billion in revenue from the tariffs.
The core issue of the case was the implementation of Trump’s massive tariffs imposed on foreign imports. After taking office, Trump issued an executive order that initially imposed a tariff of at least 10% on goods from most countries doing business with the United States. Goods from countries like China have been hit with much higher tariffs — up to 145%, though they have since come down. Imports from allies like Canada and Mexico have been taxed at 25%; Canada's rate was later increased to 35%.
Court challenges contending the president had exceeded his authority soon followed, with about two dozen previous cases ending up on the Supreme Court’s emergency docket, allowing the tariff policies to temporarily take effect as litigation continued in the lower courts. The tariff case became a priority when the court ordered full briefing and expedited arguments, offering justices an opportunity to say no. the court’s decision represents a rare check on Trump’s broad use of executive authority.